Federal Judge: Gov't Can't Mandate Health Insurance

BY MALLORY PERRYMAN

Transcript by Newsy.com

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A federal judge says the government can’t force you to buy health insurance. Judge Henry Hudson heard arguments on both sides of the issue from U.S. attorneys and the Virginia Attorney General.

MSNBC’s Pete Williams sums up Virginia’s argument.

PETE WILLIAMS: “The argument of the state of Virginia was that that’s unconstitutional. That it would be one thing to require people who are already in the health care system, that they had to buy a certain kind of insurance. What the state said is if you aren’t part of that stream of commerce, then Congress can’t reach out and grab you into it and say you have to buy insurance.�

It’s important to point out Judge Henry Hudson’s ruling is not against the entire health reform bill - just Section 1501 - the part that penalizes people for not having insurance. The Washington Post’s Ezra Klein says, the specific nature of Hudson’s ruling really limits the scope of the court’s action.

“Go to the text of the health-care law and run a search for ‘1501.’ It appears exactly twice in the bill…There do not appear to be other sections that make ‘specific reference’ to the provision, even if you could argue that they are ‘directly dependent’ on the provision.�

The Virginia lawsuit is separate from a Florida lawsuit, which 19 other states have joined in to argue the law is unconstitutional. CNN reports, Virginia’s case hinged on the argument of whether the insurance clause is a tax or a penalty.

ELIZABETH COHEN: “Now it’s interesting that the penalty - or tax - depending on which one you want to use, that you would pay if you don’t get insurance is actually cheaper than getting insurance.

ALI VELSHI: “You make a good point. This is actually about what would happen if you didn’t buy insurance. It’s not that you can’t impose the insurance it’s that you can’t impose the penalty for not doing it.�

Fox News’ Greta Van Susteren explains the tax versus penalty language is critical because Virginia argued - Congress has the right to tax, but not to force people into the market.

GRETA VAN SUSTEREN: “The legislators didn’t want to call it a tax because they didn’t want to tell the American people they were raising their taxes. But then the lawyers went into court and they suddenly wanted to call it a tax because if it were a tax then it couldn’t be argued now on the tax clause.�

A blogger for TPM says- Judge Hudson is a George W. Bush appointee- calling the ruling...

“…an example that decades of Republicans packing the federal judiciary with activist judges has finally paid off.�

But a blogger for Insurance & Financial Advisor says- no one in the media seemed to care the two judges who upheld the health care law in previous lawsuits were appointed by Democratic presidents.

“It appears that the ‘mainstream’ media is already setting the stage for arguing that rulings against the law are for political purposes, and not based on law. Regardless, the law IS unconstitutional… in a word, they are ‘wrong.’�

Judge Hudson refused to issue an injunction to stop the legislation from taking effect. It’s pretty much a sure thing that the Supreme Court will make the final call on this one.

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1. By: newsydotcom
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4. Added :14-Dec-10
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